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Thursday, 16 August 2012

Diesel price drops on back of improved power supply

The demand for diesel has reduced significantly over the
past few weeks, causing the price of the product to drop by 6.05 percent. This
follows a significant increase in power supply levels across the country, from
the national grid, in the same period.

Diesel, which sold weeks back, for N165 per litre at fuel
stations, now sells for N155, a drop of N10 per litre, a positive development
for users and a pain for importers. Many parts of the country have in recent
times experienced improved power supply. Only on Tuesday, the country hit a
record level of 4,477 megawatts in power generation.

The new peak exceeds the record level of 4,337 megawatts,
achieved on Monday, August 6,this year,
by 240 megawatts. Before then, it was about 3,800 megawatts. The improved
electricity supply, according to industry insiders has been as a result of
increased gas supply to the power generating stations, the strengthening of
distribution networks and transmission lines, and the fact that some of the
National Integrated Power Projects have started contributing to the national
grid.

Bart Nnaji,minister
of Power, has attributed the sharp increase to gas availability, and praised
the Nigeria Gas Company (NGC),adding “gas is coming up gradually and when fully
stabilised, we can easily hit 5,000MW.” Strengthening this position, are the
additional distribution networks which have come on stream in some strategic
locations across thecountry.